FED Revises and Extends Capital Assessments and Stress Testing Reports

FED, on July 31, 2019, had published two proposed notices in the Federal Register on the extension, with revision, of the Capital Assessments and Stress Testing Reports. The proposal was to implement a number of changes to certain schedules of the FR Y-14A, FR Y-14Q, and FR Y-14M reports. The proposed revisions consisted of deleting or adding items, adding or expanding schedules or sub-schedules, and modifying or clarifying the instructions for existing data items, primarily on the FR Y-14Q and FR Y-14M reports. Most of the proposed changes were intended to reduce reporting burden for firms, to clarify reporting instructions and requirements, to address inconsistencies between the FR Y-14 reports and other regulatory reports, and to account for revised rules and accounting principles. A limited number of proposed revisions would have modified the reporting requirements and added or expanded sub-schedules to improve the availability and quality of data to enhance supervisory modeling and for use in DFAST.

The proposed revisions were also meant to address the revised accounting for credit losses under the FASB Accounting Standards Update (ASU) No. 2016-13, titled Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and implement the CECL accounting methodology across all of the FR Y-14 reports. The proposed changes to the FR Y-14 reports paralleled the related changes to the Consolidated Financial Statements for Holding Companies (FR Y-9C) for CECL, as appropriate. The proposed reporting changes related to CECL were also consistent with the revisions indicated in the interagency final rule that incorporated the CECL transition.

Related Links

• Federal Register Notice
• Reporting Forms (ZIP)
• Reporting Instructions (ZIP)

Keywords: Americas, US, Banking, Stress Testing, FR Y-14, CECL, Dodd Frank Act, DFAST, Reporting, CCAR, FR Y-9C, Financial Instruments, IFRS 9, FED